Abstract: A DAC circuit includes: a PWM encoding circuit for converting a digital signal to first and second PWM signals, whereby a combination of the first and second PWM signals becomes a PWM encoded signal of at least 3 levels including a positive, a zero and a negative level, wherein the digital signal represents a number in a numerical range; and a demodulation circuit for generating the analog signal according to the first and second PWM signals. The first and second PWM signals have a minimum duty larger than 0 when the digital signal represents a middle number in the numerical range. The zero level of the combination of the first and second PWM signals has a duty which decreases as a difference between the number represented by the digital signal and the middle number increases.